CHL Mortgages has cut rates across its entire five-year fixed landlord range by up to 34 basis points, with rates starting at 5.94%.
The buy-to-let specialist has also expanded its fee options, with a newly-introduced 7% fee at up to 70% loan to value. A 5% fee option remains available up to 70% LTV, while 2% and 3% fee alternatives are available up to 75% LTV.
In its core product range, individual and limited company/LLP rates now start from 5.94%, houses in multiple occupation and multi-unit freehold block rates start from 5.99%, and short-term lets begin at 6.49%. Refurbishment range products begin at 5.99%.
The lender says all five-year fixed-rate loans are calculated at interest coverage ratio pay rate.
For applications which include a combination of additional-rate/higher-rate/basic-rate payers, the lender will also consider a “blended interest coverage ratio” approach to determine loan affordability based on each borrower’s tax status and their personal share of ownership/rent to help maximise interest coverage ratio affordability for landlord clients.
Highlights of its reductions include:
Five-year fix with 7% fee option – 70% LTV
* 5.94% — individual and limited company/LLP
* 6.04% – large HMO/MUFB
Five-year fix with 5% fee option – 70% LTV
* 6.49% — small HMO/MUFB
* 6.54% — light refurbishment (small HMO/MUFB)
Five-year fix with 3% fee option – 75% LTV
* 6.93% — individual and limited company
* 6.98% — short-term lets
Five-year fix with 2% fee option – 75% LTV
* 7.24% — EPC improvement (individual and limited company/LLP)
* 7.34% — light refurbishment (small HMO/MUFB)
The move follows the Bank of England’s base rate rise by 25bps to 5.25% last week, its 14th consecutive rise taking it to the highest level for 15 years.
The central bank is battling inflation, which dropped to 7.9% in the year to June from 8.7%, but still remain almost four times higher than its 2% target.
However, lenders say swap rates have fallen from their early July peak, allowing them to cut rates. Four major lenders — Halifax, Nationwide, HSBC and TSB — have cut rates this week.
CHL Mortgages commercial director Ross Turrell says: “We have started to see a stabilisation in the money markets recently, which has enabled us to reduce our rates.
“Additionally, we have taken the opportunity to implement a number of different fee options, which alongside our broad criteria and underwriting experience further supports our intermediaries and their client’s needs.”
